China Development Financial (hereinafter CDF) announced its January earnings today. Spokesperson and Senior Vice President Richard Chang said that the volume of capital market transactions increased significantly in January compared to the previous month, effectively boosting the profit momentum of securities and commercial banking businesses. CDF's net profit for January was NT$2.06bn, up approximately 169% YoY and up 81% from December last year, for EPS of NT$0.14.
KGI's subsidiary KGI Bank maintained growth in overall deposit size and posted net profit of NT$423mn in January, which mainly came from core income such as interest and handling fee income and contribution from investment in financial assets. KGI Securities posted net profit of NT$1.03bn in January due to the influx of capital into large-cap electronic stocks, which led to an increase in the turnover and prices of Taiwanese stocks, solid performance in brokerage, bond and proprietary trading businesses, and contribution from overseas investments. CDIB Capital was affected by the change in the valuations of some investment positions, posting net loss of NT$125mn in January. China Life maintained stable operations, turning a profit of NT$3.72bn in January.
Richard Chang says that the acquisition of 21.13% of China Life's shares by CDF has been successfully completed, and together with the shares of China Life held by its subsidiary KGI Securities, the combined shareholding ratio will reach 55.95%. The holding of over half of China Life’s equity means greater contribution to CDF’s earnings and a more efficient use of capital by CDF. In the meantime, CDF continues to deepen its customer relationship and scale through cross-department cooperation and product development to enhance its long-term steadiness and profitability and competitive advantage.
